Subscribe to RSS feeds Bulkowski Blog via RSS

Thomas Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30+ years of stock market experience and widely regarded as a leading expert on chart patterns. He may be reached at

Support this site! Clicking the links (below) takes you to If you buy ANYTHING, they pay for the referral.

Picture of Bumper.
Picture of the head's law.
Chart Patterns: After the Buy
Getting Started in Chart Patterns, Second Edition book.
Trading Basics: Evolution of a Trader book.
Fundamental Analysis and Position Trading: Evolution of a Trader book.
Swing and Day Trading: Evolution of a Trader book.
Visual Guide to Chart Patterns book.
Encyclopedia of Chart Patterns 2nd Edition book.

Bulkowski's Deliberation

Class Elliott Wave Fundamentals Psychology Quiz Research Setups Software Tutorials More...
Candles Chart
Small Patterns
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 12/14/2018
24,101 -496.87 -2.0%
9,514 -158.63 -1.6%
758 -1.70 -0.2%
6,911 -159.67 -2.3%
2,600 -50.59 -1.9%
Tom's Targets    Overview: 12/14/2018
25,000 or 23,500 by 01/01/2019
10,100 or 9,000 by 01/01/2019
740 or 775 by 01/01/2019
7,300 or 6,700 by 01/01/2019
2,700 or 2,525 by 01/01/2019

Written by and copyright © 2005-2018 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners.

My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

If you click on this link and then buy the book (or anything) at, the referral will help support this site. Thanks. -- Tom Bulkowski

$ $ $

The deliberation has a lot in common with the advance block candle pattern. Both use three white candles in an upward price trend. However, the deliberation has requirements on body height, but none on the upper shadow like the advance block.

The deliberation works better than the advance block, too, ranking 2nd as a bullish continuation pattern, but the overall performance is near the end of the pack. Its frequency rank of 48 means you should be able to find many examples of the deliberation in a historical price series (unreal time) or real time.

Deliberation: Important Results

Theoretical performance: Bearish reversal
Tested performance: Bullish continuation 77% of the time
Frequency rank: 48
Overall performance rank: 93
Best percentage meeting price target: 36% (bull market, up breakout)
Best average move in 10 days: -6.72% (bear market, down breakout)
Best 10-day performance rank: 6 (bull market, down breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal deliberation candlestick
Top of page   More

Deliberation Discussion

The deliberation candlestick is supposed to act as a bearish reversal, but testing shows that it acts as a bullish continuation pattern 77% of the time. That is quite a substantial change from theory, but the way I measured it is probably to blame. It is far more likely that price will close above the top of the pattern since that is where the last candle line leaves it than it would be for price to drop all the way down and close below the bottom of the candle pattern.

The overall performance rank is 93 out of 103 candles. A rank of 1 is the best performance, so this falls well short. Drilling down through the data we find that the best average move is a drop of 6.72% ten days after the breakout in a bear market. I consider moves above 6% to be good, so this does well. The highest performance rank is 6th after a downward breakout in a bull market. Again, that is measured after 10 days and is a comparison against the other 102 candle types.

Deliberation Identification Guidelines

Number of candle linesThree.
Price trend leading to the patternUpward
ConfigurationLook for three white candlesticks in an upward price trend. The first two are tall bodied candles but the third has a small body that opens near the second day's close. Each candle opens and closes higher than the previous one.
Top of page   More

Three Trading Tidbits for Deliberation

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. Deliberation candles that appear within a third of the yearly low perform best -- page 195.
  2. Select tall candles for the best performance -- page 196.
  3. Deliberations within a third of the yearly high act as continuations most often -- page 198.

Deliberation Example

The deliberation candlestick on the daily scale

The chart shows a deliberation candlestick pattern, circled in red, in an upward price trend. The first two candles have tall bodies but the third line has a small body. Each of the candles is supposed to open and close higher, but a higher close is tough to see on the third day. The last day should also open near the prior close.

This deliberation acts as a reversal of the upward price trend because price closes below the bottom of the candle pattern first, not the top, plus, it appears in an upward price trend.

Notice that the trend stops when it hits overhead resistance near the top of the candle pattern. I show that as a horizontal green line. That is the way it goes sometimes.

-- Thomas Bulkowski

Top of page   More  


Other Deliberation Examples

See Also

Written by and copyright © 2005-2018 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners. Diplomacy is the art of saying "Nice doggie!" until you can find a rock.